You do a disservice to both your customers and yourself when you restrict your value proposition to price alone. Price is a critical aspect of value, of course. The customer will always think about price, and they should. Your job is to help see them see value as something more than price.
To do that, you need to actually provide them with value that is based on more than price. An easy example of this is found in B2B selling. Rather than selling a product to a consumer, you’re supplying a business with the means to make money. If you can offer them the means to greater profits than anybody else, the initial price is almost irrelevant?
In a B2C situation, it could be as simple as offering a product that lasts twice as long as any competitor’s. Even if you were to charge exactly twice the price, they’re saving time and money by taking fewer trips to the store. If product failure leads to delay of production on their end, you’re saving them even more money.
When you think about your business this way, you can come up with various ways that ultimately enrich you and your customers. Here are a few things you can think about when trying to liberate yourself from the price war:
1. Define your Unique Selling Proposition, and strengthen it.
If you provide things that nobody else can, you can almost charge whatever you want. Just make sure your pricing is on point — it should provide more value for the money than your competitors. Also, be prepared to have to educate your customer on why your value is superior. They might not consider all the cost factors that matter.
To strengthen your USP, you can identify your most valuable customers/sales (learn more about that here. You can develop your business to specialize in serving a certain type of customer, and be unmatchable in that niche.
2. Consider the customer’s entire experience and remove “resistance”.
The customer’s perception of value is tied to many things besides price, such as time, stress, enjoyment, ease, confidence, cost of ownership, and the way they feel when they do business with you. To identify all the ways that you might be able to gain an edge on your competition, there’s a simple strategy you can use: Just make a list of all the “resistance” that customers face when confronted with the decision to purchase from you or not.
You can start by listing the objections that you hear from customers. It’s also helpful to assume that your customers won’t always voice their objections. They’ll even voice a separate objection than the one(s) they’re actually internalizing. There are many reasons for this, which, for the sake of brevity, we won’t get into here.
The point is, there are many things between the customer and your product. The more of them you can identify, the more ammo you’ll have in the fight to reduce resistance.
3. Your expertise is a highly valuable commodity
This can be seen as part of your USP. You can set yourself apart by challenging the way the customer views your industry and the value that can be provided. Think about the massive difference between what you know about your industry (as an expert), and what the customer knows about your industry.
You’ve probably come so far in knowledge of your field that you forget how little you once knew. Customers, on the other hand, don’t know what they don’t know. They don’t even know the right questions to ask.
Of course, sharing your expertise is easier said than done. But so is everything else in business. The more creative you can be in empowering your customers with your knowledge, the more you set yourself apart. If you can educate them on how to get more value from you while you’re at it, everybody wins.